NEW YORK (
) -- Building products manufacturer
is being flipped to new private equity owners
and Ontario Teachers' Pension Plan, a sign of renewed investor interest in the recovering housing sector.
Terms of the deal were not disclosed, but according to reports CPG was valued at about $1.5 billion including about $500 million in assumed debt.
Scranton, Pa.-based CPG is a manufacturer of highly-engineered and low maintenance materials in residential, commercial and industrial construction, including trim, moulding, deck, rail, porch plank, and pavers.
The company since 2005 has been owned by AEA Investors LP, which invested about $55 million in CPG for capacity expansion and helped shepherd a series of acquisitions by the company that helped grow annual sales from $220 million to more than $500 million.
CPG has a long history of private equity ownership, with AEA buying the company from
Whitney & Co.
for about $360 million. The company had filed for an initial public offering in 2011 but never went through with a securities sale.
Company CEO Eric Jungbluth in a statement said his firm has known its new owners for some time, saying that CPG is "excited to partner with them as they share our vision for continued growth at CPG."
Bennett Rosenthal, co-head of private equity at Los Angeles-based Ares, said "CPG is recognized as an industry leader and innovator, and we are looking forward to participating in the company's continued success."
Sullivan & Cromwell
team including partners Alison Ressler, Rita O'Neill, S. Neal McKnight, Matthew Friestedt, Andrew Mason, David Spitzer and Juan Rodriguez provided legal counsel to Ares and Ontario Teachers, with
JP Morgan Securities
UBS Investment Bank
acting as financial advisers.
CPG was advised by
Deutsche Bank Securities
and attorneys with
Fried, Frank, Harris, Shriver & Jacobson
Written by Lou Whiteman.